Wireless Payment Processing Services Platforms

As their name implies, wireless payment processing services platforms enable businesses and non-profit organization to accept credit cards and other forms of electronic money on wireless devices, enabling the processing of payments at locations outside of stores and offices. Depending on the kind of wireless payment processing service, the wireless terminals will be operating on either short- or long-range signal networks to transmit the transaction data collected by the device from the bank card’s magnetic stripe.

There are two primary groups of wireless payment processing services:

• Long-range wireless payment processing. Long-range mobile platforms utilize the same wireless networks that mobile phone carriers use for transmitting their customers' voice and data exchanges. This type of service is available everywhere the network's signal can be caught. It is the best solution for card acceptors that often accept credit cards at their customers' places of operation or at industry conferences and similar kinds of events.
• Short-range wireless payment processing. Short-range mobile devices utilize the same wireless services that cordless phones use. The wireless processing terminal can be used within a radius of a few hundred feet from the location of its base unit that is connected to a phone land line. The short-range wireless payment processing services is ideal for card acceptors with limited wireless requirements, that is businesses who need credit card processing capabilities at various locations all over their premises.

There are many great advantages to using wireless solutions for processing credit card payments, including:

• Alternative card acceptance options. A wireless payment processing service enables businesses to quickly accept card payments at trade shows, industry gatherings or on their customers' own premises.
• Improved fraud detection. With a mobile terminal the cardholder remains in physical possession of the card throughout the transaction, thus minimizing the probability of a fraudulent activity taking place.
• Limited processing costs. As mobile transactions are accepted in the safer card-present setting, they typically receive the lowest processing rates available.

There are also a few disadvantages of using wireless payment processing platforms that card acceptors need to be aware of:

• High terminal cost. The cost of wireless terminals is much higher than that of regular point-of-sale (POS) machines and can be the biggest factor in your decision, especially if your card acceptance volumes are low.
• Carrier signal presence. Usually listed as the number one drawback, carrier signal presence is constantly being improved. Card acceptors will have to check the availability and strength of the network that your prospective processor is using in the particular area you will be working at prior to setting up a wireless payment processing account.